Brazil Temporarily Eliminates Import Taxes on Foodstuffs to Combat Inflation
Brazil’s Camex has temporarily eliminated import taxes on nine food items to reduce inflation, effective October 14. This applies to various products, including beef and coffee, with a limited impact of about US$ 110 million annually, as the measure is deemed transitory.
The Brazilian Chamber of Foreign Trade, known as Camex, has approved the temporary suspension of import taxes on nine essential food items to mitigate inflation. This exemption targets boneless frozen beef, various forms of coffee beans, corn (non-sowing), specific uncooked pasta, cookies, extra virgin olive oil, crude sunflower oil, cane sugar, and preserved sardines, capped at 7,500 tons. The tax reductions, previously between 7.2% and 32%, will take effect immediately, reducing the rates to 0%.
To detail the food items subject to zero tariffs, Camex utilized the Southern Common Market (Mercosur) Nomenclature (NCM) codes, which categorize the nine products. Notably, the coffee exemption encompasses both roasted and unroasted beans. Vice President and Minister of Development, Industry, Trade and Services, Geraldo Alckmin, confirmed that this measure will be effective Friday, October 14, and will be formally published in the Federal Official Gazette.
The zero tariff on sardines is restricted to a quota of 7,500 tons. Additionally, following previous announcements, the import quota for palm oil has been extended from 60,000 to 150,000 tons for the next 12 months while maintaining a 0% import tax rate. Alckmin also projected that this taxation reduction will impact public finances by approximately US$ 110 million annually, although he anticipates this financial effect to be minimal due to the temporary nature of the measure.
In summary, Brazil’s decision to lift import taxes on critical food items represents a strategic effort to combat inflation. This measure is limited in scope, applies specifically to selected products, and is expected to have a constrained financial impact. It underscores the government’s commitment to providing relief to consumers during challenging economic conditions.
Original Source: en.mercopress.com
